The document provides details about the proposed bakery business including its location, hours, target customers, objectives, positioning, products, pricing strategy, promotion plan, sales forecast, milestones, and contingency plan. The bakery aims to increase sales 40% in a year and gain 25% customer mind share and 10% heart share also within a year. It will position as luxury and use organic ingredients at relatively high prices. The promotion plan includes magazines, discounts and social media. Sales are forecast to steadily increase over the first year. Milestones and controls are outlined to track objectives and adjust if needed.

1. Chan Koon Kiu, Kennis 11579948D
Cheung Wan Yin, Winnie 11557030D
Kong Ka Wai, Kerry 11514169D
Wong Hoi Ning, Stephain 11524532D

2. Background
Opening hour: 8a.m. to 10p.m.
Location : Harbor City
Size: 900 sq.ft
Operation of the 1) self-served in take-away bakery and bottled
bakery: drinks
2) full-service in a café style.
Target Customers -Mainland travelers
-Business person
-visitors of the shopping mall

3. Objectives
1. To increased 40% sales volume when
compared to the first month within a year
2. To gain customer’s share of mind by 25%
within 12 months
3. To acquire customer’s share of heart by 10%
within 12 months
4. To obtain 30% of customer retention within
12 months especially for the Café area.

4. Positioning Strategy
Positioning Perceptual Mapping
Organic ingredients ->create a healthy image
->price relatively expensive lies in the middle
->build a deluxe image of the perceptual map
Take way service and dine in service

5. Products - Core products
Luxury dining
experience
Elegant Sophisticated
interior design atmosphere
Relaxing and romantic
environment

6. Facilitating products
Juice (4) Coffee (8)and Tea (4) Others
(Soft drinks & Water)
Squeezed Orange ($25) Americano ($38) Coca Cola ($25)
Squeezed Apple ($25) Caffé Latte ($38) Coke Zero ($25)
Squeezed Cranberry ($30) Cappuccino ($40) Sprite ($25)
Squeezed Grapefruit ($30) Expresso ($45) Chocolate ($35)
Mocha ($40) Peppermint Chocolate ($35)
Eagle Creek Mocha ($50) Evian ($18)
Caramel ($35) Perrier (Unflavored) ($22)
Lemon Tea ($25) Perrier (Lemon) ($22)
*Organic Earl Grey ($35) Milk ($18)
*Organic Spring Jasmine ($30)
*Organic Peppermint ($30)

7. Supporting products
Luxury and
“Just baked relaxing
Fresh-squeezed dining
juices products”
experience
Augmented products
Interior design
Semi-opened
(white and silver Classic and soft
kitchen
color) music
with the aroma

8. Place
2/F, Harbour City, Popular mall for
Tsim Sha Tsui local and tourists
Various Payment
Official website
methods

9. Price
• Marketing objective
• high prices to cover higher quality and guest
service levels
Internal • the price is above the average in the market but
Factors little bit cheaper than hotel cake shop
• Competition
• The price range set by:
agnès b. CAFÉ L.P.G food from $32 to $35 and
External coffee from $28- $45
Factors Starbuck food from $16-$38 and drinks from
$16- $42

10. Pricing Strategy
Cost-based Pricing
The high-end or luxury brand items typically have a high markup.
(Alexis W. 2003-2012)
Mark up: 65% Mark up: 75% Mark up: 50%
to cover the high rental cost and the cost of high quality product ingredient

11. Costs/(1-desired profit %) = Selling Price
Stewart John. Quick Printing (Jun 2007)
Selling price: Selling price: Selling price:
$15 to $35 $40 to $70 $18 to $50
Psychological pricing factor
Selling price can give a signal to customers that our product is high quality especially they do not
familiar commencement of business

12. Promotion
> Cooperate with Harbor City
Sales promotion > Offer Credit Card Discount
> Groupon
strategy > Openrice
> Facebook, Twitter
Social network >Celebrities ’Blog
Magazine
Catalogues

13. Marketing Expense Forecast
Items/Month Jan Feb March April May June July August Sep Oct Nov Dec
Magazine
Advertising $2,500 $2,500
Catalogues $4,430
Groupon $4,000
Openrice
Advertising $4,000
Openrice
Discount
Coupon $3,500
Sales Forecast (2013-2014)
Items/Month Jan Feb Mar April May June July August Sep Oct Nov Dec
Food 185000 198875 208125 217375 231250 240500 265250 275300 249750 259000 268250 281500
Drinks 44130 47439.75 49646.25 51852.75 55162.5 71711.25 64008.5 65201 59575.5 61782 63988.5 65310
Service Charges 22913 24631.48 25777.13 26922.78 28641.25 31221.13 32925.85 34050.1 30932.55 32078.2 33223.85 34681
Total Sales 252043 270946.2 283548.4 296150.5 315053.8 343432.4 362184.4 374551.1 340258.1 352860.2 365462.4 381491

14. Milestones

15. Control
Perspective Possible way Desired outcome
Customers’ Distribute questionnaire in the Share of mind 25% and share of heart10%
satisfaction harbor city and Royal Bakery
café’s members To examine whether our product and service
satisfy customers or not
Customers’ Membership database Increase the customers’ retention
retention
Promotional Change advertising frequently To refresh customers’ memory
control
Pricing Adjust the price by referencing Maintain profitability
control competitor and market
environment
Budgetary review performance by To make consistency between prepared and
Control referring to the budget actual income and expenditure
Keep accurate income and
expense record

16. Contingency plan
Problem Remedy
Shortage of product -Not relying on only one supplier
-Store some product for back up
Labor absent -Part time staff
Technology lags -Experienced engineer stand by
-Machine regular maintenance

17. Reference
Wong, J. (2010). The Opportunities for Hong Kong Organic Market Development.
IFOAM2005 Submission for Platform Presentation, 1.
The Global Market for Organic Food & Drink (2003). . Retrieved March 5, 2012 from
http://www.organicmonitor.com/700140.htm
Food: Global Industry Guide, . Retrieved March 5, 2012 from
http://www.researchandmarkets.com/search.asp?q=food%20global%20indus
Hong Kong Organic Resource Certification Company Limit, . Retrieved March 5, 2012
from
http://hkorc-cert.org/english/eapply.htm
http://www.news.gov.hk/tc/categories/finance/html/2011/12/20111221_174049.lin.
shtml
http://www.tradingeconomics.com/hong-kong/gdp-growth
http://www.lohasclub.com.hk/

18. Hong Kong Consumers Undergoing Major Lifestyle and Attitude Changes Shaped by Rapid
Development of Technology (2007). Retrieved March 18, 2012 from
http://www.hk.nielsen.com/news/20070628.shtml
Understanding Global Consumers’ Attitudes, Behaviors and Lifestyles to Profit from Current and Future
Opportunities in the Health and Wellness Space (2009). Retrieved March 18, 2012 from
http://datamonitor.com
A Statistical Review of Hong Kong Tourism 2010 (2011). Retrieved March 18, 2012 from
http://partnernet.hktourismboard.com/pnweb/jsp/doc/listDoc.jsp?doc_id=138859&cat_id=3632&log
s=yes&type=FREE
Gastro Primo (2009). Retrieved February 18, 2012 from http://gastroprimo.com/services.php
Copeland, C. (2007) Organic Food History and Current Trends. Retrieved March 21, 2012 from
http://ezinearticles.com/?Organic-Food-History-and-Current-Trends&id=989817
Hector, V. (2003). Organic Food Encyclopedia of Food and Culture. Retrieved March 21, 2012 from
http://www.encyclopedia.com/topic/organic_food.aspx
http://www.hadilworkshop.com/print05.html
http://search.proquest.com.ezproxy.lb.polyu.edu.hk/docview/222775445?accountid=1621(PRICE)